GENERAL FARM PROGRAM 



1113 



with the American dollar and price level. In trading with other 

 nations we must realize that in the same way that econoftiic laws of 

 exchange require parity for our own farm production, we must be 

 willing to pay parity for any imports which we may need to supple- 

 ment our own production. 



World economic problems are the result of too low a price for farm 

 products, and we cannot bring about world recovery by reducing our 

 price level to that of the rest of the world. To clo so will mean a 

 depression, national bankruptcy, and world poverty as a stepping 

 stone for communism. 



Mr. Chairman, that concludes my statement, but I would like to 

 insert in the record a chart which shows a record of 20 years — 1929 to 

 1947 — showing the economic balance between raw material income, 

 total wages and salaries and, national income, for the United States. 

 In the chart there are show i total wages and salaries, the national 

 income, gross farm and mineral production value in dollars, the per- 

 centage of total wages and salaries to national income, and the per- 

 centage of raw material income to national income. I think there are 

 copies available for the members of the committee. 



Mr. Pace. You also want to include those tables at the end of your 

 statement. 



Mr. WiLKEN. That is right. 



Mr. Pace. The two tables will be inserted at this point in the record, 

 to be followed by the chart. 



(The two tables and chart are as follows:) 



1 Estimated for 1948. 



Note.— Gross farm income is total farm production sold, plus farm products used on the farm. Total 

 average percentage of gross farm income to national income 14.3 percent or approximately $1 of gross farm 

 production to $7 of national income. 



Average percentage of total farm and mineral production 20.2 or approximately $1 of raw material income, 

 farm and mine, for each $5 of national income. Percentage of parity for raw materials determines the percent 

 of prosperity and each 1 percent of parity for raw materials represents approximately $2,000,000,000 of national 

 income. Society cannot afford to permit raw material prices to go below parity and employment and 

 national income will ratio directly to raw material income in ratios set out above. 



Prepared by Carl H. Wilken, economic analyst, Raw Materials National Council, Sioux City, Iowa. 



